Monday, September 28, 2009

Let's just spend our way out of an economic crisis.

U.S. budget deficits will continue to pile up in the next decade, eventually reaching an unsustainable level that may result in an economic collapse, according to Richard Duncan, author of “The Dollar Crisis.”

The U.S. has little chance of resolving its deteriorating financial position because the manufacturing industry continues to shrink, leaving the nation with few goods to export, said Duncan, now at Singapore-based Blackhorse Asset Management.

Sounds like a good argument for preparing for the worst. How can you prepare for an economic collapse?

The usual stuff will help:

Get out of debt.

Store up some food and have some means of producing more food.

Get the training and tools to protect your family and your resources.

Learn skills that will allow you make some kind of income in a bad economic times.

Start getting yourself in better physical condition. You may be forced to take a job that requires more physical effort than you are used to now so the sooner you start the better off you will be. Another benefit of getting in better shape is that you will have a better chance of living long enough to see your grandchildren or even great-grandchildren.

I am no expert of any kind on this but I think a good approach is to imagine you just lost your job and that there are few prospects of other employement in that field. Then look at your situation and start thinking about the problems you will face. Then start thinking about what you can do to head off those problems now while you still have an income.

Reduce debt if you can. If you have a problem that you know is coming in your house or vehicle then think about fixing it now while you can better afford it. Get a physical. Get your teeth cleaned and checked out. Get your eyes checked and if you need corrective lenses then get a couple of spare pairs of glasses.

There are plenty of books and websites that can give you more detailed info that I can if you just look around a little. The important thing is to take the time to look around. A little effort now can make things easier in the future. Even without a gloom and doom collapse you will be better off.